Dioro Exploration NL - HBJ pit geotechnical event



    
    /NOT FOR DISTRIBUTION IN THE UNITED STATES OR DISSEMINATION THROUGH A
    U.S. NEWSWIRE SERVICE/
    

    PERTH, Western Australia, Feb. 2 /CNW/ - DIORO EXPLORATION NL ABN 31 009
271 532 (ASX/TSX: DIO) - Dioro advises that a substantial wall failure has
occurred in the west wall of the HBJ pit as foreshadowed in the news release
made on 23 December 2008.
    On the 28th January the South Kal mine site received approximately 70mm
of rain from Cyclone Dominic that caused extensive flooding in the Kalgoorlie
district. Although remediation work undertaken during December 2008 and
January 2009 is likely to have assisted in slowing the wall movement and
allowed for mining during January, this heavy rain further hastened the wall
movement described in the December release and has resulted in a major slip on
31st January.
    Consequently the company has immediately ceased all mining at the HBJ
pit. All staff and equipment was removed from the pit well prior to the
failure.
    The company is assessing the extent of the wall failure to determine its
impact on the mining of HBJ, however the company has decided to postpone
further mining in the HBJ pit until a full feasibility study is completed.
    During December following the increase in the HBJ wall movement, the
company commenced preparation works for the mining of Mt Martin and Mt Marion,
consistent with the existing business plan.
    Whilst the feasibility study and preparation works referred to above are
being conducted, the Jubilee mill will continue processing newly mined ore
from the Frog's Leg mine and previously mined and stockpiled ore respectively.
At the end of December the company had in excess of 220,000 tonnes of medium
grade stockpile adjacent to the Jubilee Mill and in excess of 1,000,000 tonnes
of low grade stocks at 0.8g/t.
    December was a record month for the Frog's Leg underground mine with
approximately 45,000 tonnes mined @ 4.86g/t (100%). Dioro's 49% share of ore
from the Frog's leg mine is processed at the Jubilee mill. The mining and
processing activities from this operation are currently cash flow positive for
Dioro.

    ABOUT DIORO

    Dioro is a dual listed (ASX and TSX) (Code DIO) Australian gold producer
with attributable Ore Reserves of 525,000 ounces and Measured and Indicated
resources in excess of 2,100,000 ounces. Dioro owns the 1.2Mtpa Jubilee
processing facility that is located 30km from Kalgoorlie, Western Australia,
with all attributable resources and reserves located within 50km of the
processing facility.
    Dioro has 1500 square kilometres of prime exploration acreage. Dioro also
has exposure to uranium exploration in Western Australia with Vale spending
A$4 million to earn a 60% interest in the Kunderong Uranium project.

    The information in this report that relates to Exploration Results,
Mineral Resources and/or Ore Reserves is based on information provided and
compiled by Rhod Grivas MAusIMM and Mark Pitt FAusIMM, employees of Dioro
Exploration NL. Mr Grivas and Mr Pitt have sufficient experience that is
relevant to the style of mineralisation and type of deposit under
consideration and to the activity which they are undertaking to qualify as a
Competent Person as defined in the 2004 Edition of the Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves and as a
Qualified Person under the provisions of National Instrument 43-101. Mr Grivas
and Mr Pitt consent to the inclusion in the report of the matters based on
their information in the form and context in which it appears.

    Caution Regarding Forward-Looking Statements: The forward-looking
statements made in this release are based on assumptions and judgments of
management regarding future events and results. Such forward-looking
statements, including but not limited to those with respect to the operations
at the company's South Kal operations and the Frog's Leg joint venture and the
company's capital expenditures and expected future production involve known
and unknown risks and uncertainties which may cause the actual results,
performance or achievements of the company to be materially different from any
anticipated future results, performance or achievements expressed or implied
by such forward-looking statements. Such factors include, among other things,
the actual market prices of gold, the actual results of current exploration,
the actual results of future mining, processing and development activities,
changes in project parameters as plans continue to be evaluated, as well as
those factors disclosed in the company's public documents.

    Currency: Unless otherwise noted, all figures in this news release are
expressed in Australian Dollars





For further information:

For further information: Rhod Grivas, Managing Director, Dioro
Exploration NL, Ph: +61 8 9389 8799; David Tasker, Allan Francis, Professional
Public Relations, Ph: +61 8 9388 0944

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DIORO EXPLORATION NL

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